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Celsius Stock Price (NASDAQ:CELH) Takes Analyst Downgrades

Analyst Team trader
Updated 13 Jun 2024

Shares of Celsius Holdings Inc (NASDAQ:CELH), the popular beverage company, have experienced a notable downtrend since the start of June, indicating a period of volatility for the stock. Currently, the stock has recorded a significant 23.8% decrease and is facing its seventh daily loss in a span of eight sessions and is now 36% below the close on May 4th.

Despite the recent downhill trend, it's important to note that CELH shares are still up 3% since the beginning of the year, so whilst this downwards pressure is not what holders of the stock will be looking to see we need to know why the Celsius stock is falling, and what flipped the sentiment?

The stock has drawn a fair amount of attention from short sellers, with short interest accounting for 8.6% of CELH's available float. Based on the average volume of shares traded, it would require over three days to cover all short positions, which could exert upward pressure on the stock should a short squeeze occur.

Examining the technical indicators, the stock's 14-day relative strength index (RSI) stands at 14.5, signalling that the stock might be in the “oversold” territory. What this suggests is that the stock could be due for a short-term bounce back from its current position. Adding to the potential for an upturn is Celsius stock's proximity to its 200-day moving average.


Analysts have come out today with downgrades on their price targets for Celsius stock, with Jefferies moving their forecast down to $98 from $104. The firm remain bullish, keeping a Buy rating in tact, and the price target even after the drop is more than 50% above the current trading price of $60 and change.

TD Cohen also reduce their price target from $95 down to $85, and also maintain a Buy rating. They reduce in line with their analysts reducing sales numbers in line with the reduction expected in Pepsi inventory.

Morgan Stanley, Stifel, and Wedbush are three other notable names to trim their price targets yesterday after Celsius CEO John Fieldly was quoted as saying that the energy drinks category is slowing. Despite that fact, he still sees Celsius Holdings growing according to comments at the Evercore ISI Consumer and Retail conference.

Celsius Holdings Inc has experienced volatility, but multiple signals could point toward a potential recovery. This could represent an opportunity to buy into weakness, with analysts holding estimates significantly above the current levels. That being said, you should always do your own due diligence on any investment you are considering, and do not rely solely on what you read from wall street. Analysts are likely to shift their ratings at a moments notice when the data indicates, and you do not want to get caught holding a company that you do not believe in.

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.